H & M Hennes & Mauritz AB (publ)
H & M Hennes & Mauritz AB (publ) Fundamental Analysis
H & M Hennes & Mauritz AB (publ) (HMRZF) shows moderate financial fundamentals with a PE ratio of 26.08, profit margin of 5.33%, and ROE of 29.53%. The company generates $227.5B in annual revenue with weak year-over-year growth of -0.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HMRZF's fundamental strength across five key dimensions:
Efficiency Score
WeakHMRZF struggles to generate sufficient returns from assets.
Valuation Score
ModerateHMRZF shows balanced valuation metrics.
Growth Score
ModerateHMRZF shows steady but slowing expansion.
Financial Health Score
ModerateHMRZF shows balanced financial health with some risks.
Profitability Score
ModerateHMRZF maintains healthy but balanced margins.
Key Financial Metrics
Is HMRZF Expensive or Cheap?
P/E Ratio
HMRZF trades at 26.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HMRZF's PEG of 0.23 indicates potential undervaluation.
Price to Book
The market values H & M Hennes & Mauritz AB (publ) at 7.39 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.48 times EBITDA. This is generally considered low.
How Well Does HMRZF Make Money?
Net Profit Margin
For every $100 in sales, H & M Hennes & Mauritz AB (publ) keeps $5.33 as profit after all expenses.
Operating Margin
Core operations generate 8.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.53 in profit for every $100 of shareholder equity.
ROA
H & M Hennes & Mauritz AB (publ) generates $7.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
H & M Hennes & Mauritz AB (publ) produces operating cash flow of $31.01B, showing steady but balanced cash generation.
Free Cash Flow
H & M Hennes & Mauritz AB (publ) produces free cash flow of $20.37B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $12.75 in free cash annually.
FCF Yield
HMRZF converts 6.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How HMRZF Stacks Against Its Sector Peers
| Metric | HMRZF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.08 | 23.49 | Worse (Expensive) |
| ROE | 29.53% | 1160.00% | Weak |
| Net Margin | 5.33% | 672.00% | Weak |
| Debt/Equity | 1.81 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.18 | 2.56 | Neutral |
| ROA | 7.14% | -8277.00% (disorted) | Weak |
HMRZF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews H & M Hennes & Mauritz AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3.45%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
-11.23%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
12.50%
Industry Style: Cyclical, Growth, Discretionary
High Growth